Peak Re has announced the successful issuance of the second CAT bond, via Black Kite Re, a special purpose insurer (SPI) in Hong Kong. Building on the success of its inaugural 2022 issuance, this transaction secures $50m in retrocessional reinsurance protection, extending coverage in Japan to earthquake and typhoon risks while introducing parametric earthquake protection for China and India.
This issuance represents an advancement in the use of insurance-linked securities (ILS) to address Asia’s growing CAT risks.
For the first time, India has been included in a 144A catastrophe bond, expanding risk transfer to one of the region’s fastest growing and most dynamic markets. It also marks the first multi-peril, multi-territory CAT bond issued by an Asian sponsor from an Asian domicile.
In addition, it is the first time a Hong Kong SPI has been reused for a second issuance, further highlighting the scalability and maturity of Hong Kong’s ILS framework.
Supporting Resilience and Innovation in Asia
“This transaction underscores our ability to pioneer innovative risk transfer solutions for the Asia-Pacific region,” said Peak Re CEO Franz-Josef Hahn.
“By combining developed markets like Japan with emerging markets such as India and China, we’ve created a unique diversifier that strengthens resilience for our clients and their communities.”
A Sophisticated Approach to Risk Protection
“The Black Kite Re 2025-1 bond provides us with a unique structure that combines industry-loss-trigger coverage for Japanese earthquake and typhoon risks with parametric earthquake protection for China and India,” said Peak Re head of third-party capital Iain Reynolds.
“Its transparency and diversification not only deliver effective risk transfer but also offer a compelling opportunity for investors to participate in Asia’s dynamic catastrophe risk market.”
Peak Re head of global retrocession Sascha Bruns also said, “This structure integrates the security of a fully collateralised retrocession with the efficiency and rapid response of parametric triggers, which benefits both Peak Re and ultimately our cedants.”